Mortgage refinance ? Can a subprime (8.25% and 12.75%) 80/20 mortgage be successfully refinanced?

Question

This was done with undisclosed income, credit score of 635. The owner has been in the home 3yrs, has an ARM adjusting within a year and is upside down on the loan.This loan is not Freedie Mac, Fannie Mae or HUD and all payment shave been made on time. Lender states there's nothing they can do for her, she's not behind in payments, doesn't qualify for any new government programs. What are the options? House was purchased for 250K now estimated worth is 200K

6 months ago - 2 answers

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Probably not. 1.The equity in the house is not there. 2. If the income was stated, is the income actually sufficient to qualify? If so can the income be documented through the use of pay stubs, W2 froms, and tax returns? 3. A credit score of 635 is rather low. Essentially there is no chance this borrower can refinance this loan. If the borrower cannot afford the payments on the mortgage, the options open are: The only chance this borrower has to keep this home is a loan modification. If that is not possible, and the homeowner cannot afford to make the Mortgage payments, the borrower must sell the house. One way to do that is what is called a short sale where the lender agrees to take less than is owed on the loan. The next option is a deed in lieu of foreclosure. If the borrower does not take one of those options and gets behind on their payments, the lender will foreclose.

by Agnes C

6 months ago

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